Month: August 2016

A Tax Smart Strategy: Hire Your Spouse

If you are married and run your business as a sole proprietorship (or as a single-member LLC treated as a sole proprietorship for federal tax purposes), it can be a tax-smart move to hire your spouse as an employee. Then, provide most or all of his or her compensation in the form of payments from a […]

Posted In: Tax Advisor, Tax Deductions, Tax Filing

Back-to-School Tips for Grownups

August is back-to-school time across the country. Whether the school buses are already disrupting your commute to work — or will be soon — the start of the school year brings opportunities for savvy business owners. ABCs of Education-Related Tax Breaks On a personal level, there are numerous education-related federal tax deductions and credits to consider. […]

Posted In: Tax Advisor, Tax Deductions, Tax Filing

Compare and Contrast the Republican and Democratic Tax Platforms

With both major political party conventions finally behind us, it’s time to focus on the upcoming national election. Among their many differences, the Republicans and Democrats have widely divergent tax platforms. While platforms are always relatively nonspecific and not necessarily synced with what the presidential candidates have in mind, it’s still good to know what tax […]

Posted In: Tax Advisor, Tax Deductions, Tax Filing

3 Taxes People Love to Hate

Few people enjoy giving money to the IRS, but some types of taxes are viewed more unfavorably than others. Here are three worthy candidates vying for the title of most-hated tax. Penalty Tax on Individuals without Health Insurance As you probably know, the Affordable Care Act (ACA) imposes a penalty on individuals who fail to have […]

Posted In: Tax Advisor, Tax Deductions, Tax Filing

7 Tax Savvy Ways to Give to Charity

Charitable giving is on the rise. And the momentum is expected to continue, given the natural disasters and human tragedies that have happened in recent months. Highlights of the Giving USA Report A recent report, Giving USA 2016: The Annual Report on Philanthropy for the Year 2015, shows charitable-giving trends based on contributions made by individuals, foundations, […]

Posted In: Tax Advisor, Tax Deductions, Tax Filing

New IRS Guidance for Designated Roth Accounts

Does your employer offer a 401(k), 403(b) or governmental 457 plan? If so, you may be able to set up a designated Roth account through your company’s plan. Then your Roth account will be allowed to receive designated Roth contributions that are taken out of your salary through so-called “salary-reduction contributions.” Here’s more on how this […]

Posted In: IRS

DOL Announces Increased Civil Penalties for Violations of Federal Laws

The Department of Labor (DOL) has issued interim final rules that will increase civil penalties assessed to employers for willful violations of the minimum wage, overtime, and child labor provisions in the Fair Labor Standards Act (FLSA), and civil penalties in the Family Medical Leave Act (FMLA). There will also be increased penalties under other laws. […]

Posted In: Business

Avoiding the 10% Penalty On Early IRA Withdrawals

For one reason or another, you may need to take some money out of an IRA before reaching retirement. You can withdraw money from an IRA at any time and for any reason, but it’s important to keep in mind that most IRA withdrawals are at least partially taxable. In other words, you’ll owe regular income […]

Posted In: IRA and Roth